What happen when your car is gone or stolen ?

Stolen car | blog.pfaasia.com
As the crime rate continue to raise, vehicle thefts have also become so common that most car owner are concern of. So what you should know about motor insurance and making a claim when your vehicle is stolen.
For most of us, we bought our vehicle with our hard-earned money and took good care of it. Nowadays, for most of us who stay in the city and it is rather inconvenient to move from places to places without a vehicle. Needless to say if we don’t have it for months… While losing your vehicle is one thing, but the process of making an insurance claim, waiting for police investigations while servicing the loan repayment for vehicle you don’t have can be a very painful experience.
According to General Insurance Association of Malaysia (PIAM) statistics show that between Jan to Dec 2010 there is 37,564 number of vehicle theft. In the same period, insurance companies incurred claims totaling RM 603,719,506
Source: ISM Motor Claims Register – Jan to Dec 2010 (ICIS – MCR)
While public awareness on vehicle theft has increased. It is important for all motorists take precautionary measures and understand the protection for vehicle theft offered under their motor policies. It is vital to understand what your respective motor policies offer in term of theft protection as this helps reduce potential misunderstandings with insurers when claim should arise.
3 types of motor insurances available in Malaysia. The level of your coverage dictates what you can claim if your vehicle sustains loss or damages.
1) Third party cover
This policy insures you against claims for bodily injuries or deaths caused to other persons (known as the third party), as well as loss or damage to third party property caused by your vehicle. 
2) Third party, fire and theft cover
This policy provides insurance against claims for third party bodily injury and death, third party property loss or damage, and loss or damage to your own vehicle due to accidental fire or theft. 
3) Comprehensive cover
This policy provides the widest coverage, i.e. third party bodily injury and death, third party property loss or damage and loss or damage to your own vehicle due to accidental fire, theft or an accident.
A standard motor insurance will not cover certain losses, such as your own death or bodily injury due to a motor accident, your liability against claims from passengers in your vehicle (except for passengers of hired vehicles such as taxis and buses) and loss or damage arising from an act of nature, such as flood, storm and landslide. However, you may pay additional premiums to extend your policy to cover flood, landslide, landslip as well as cover your passengers. It is important to check your policy for the exclusions.
Is your vehicle adequately insured ?
If you are buying a policy against loss/damage to your vehicle, you must ensure that your vehicle is adequately insured as it will affect the amount you can claim in the event of loss/damage. For a new vehicle, the insured value will be the purchase price while for other vehicles, the insured value is the market value of the vehicle at the point you apply for the insurance policy. 
• Under-insurance :-
If you insure your vehicle at a lower sum than its market value, you will be deemed as self insured for the difference, i.e. in the event of loss/damage, you will only be partially compensated (up to the proportion of insurance) by your insurance company.
• Over-insurance :-
  Should you insure your vehicle at a higher sum than its market value, the maximum
  compensation you will receive is the market value of the vehicle as the policy owner
  cannot ‘profit’ from a motor insurance claim. Source: Insurance Info

What to do next when your car is gone ?
  1. Do not panic! If you can’t find your vehicle in a public area, look around and make sure you have not merely forgotten where you parked it. If you parked it illegally check with the relevant authority first as it may be towed away.
  2. Lodge police report immediately, bring along the a copy of car registration card issued by Road Transport Department (JPJ). 
  3. Inform your insurer. Only motorists with Comprehensive cover can submit a theft claim. 
Making a claim ?

The insurer will require the following when you make a claim. Please take note some insurers may require additional or fewer supporting documents. 

1) Completed and signed insurance claim form
2) Original vehicle registration card duly signed by owne
3) Police investigation result
4) Original certificate of insurance
5) Copies of insured’s identity card and driving license
6) Copies of driver identity card and driving license (if differ from insured)
7) Original release letter or latest outstanding loan statement from the financial institution/bank which finances the purchase of your insured vehicle (if applicable)

8) Two set of original vehicle keys
9) JPJ’s Lampiran B duly signed and certified by a commissioner of Oaths
10) Two copies of JPJ’s Transfer Form K3 (transfer of vehicle ownership form to be completed by registered owner), K8 with annexures identified as Lampiran A1 , C1

11) Memorandum Article of Association, Form 9, 24,44 and 49 

12) certified true copy by company secretary (for company vehicle only)

Reference :
PIAM ISM motor vehicle claims statistics
General Insurance Association of Malaysia(PIAM)

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